BlackBerry and Samsung Linked Up for Mobile Business Market

Blackberrry AGMIn an announcement, BlackBerry and Samsung are joining forces to market the combined companies’ phone management services but also to better position themselves to complete against Apple and International Business Machines Corporation (IBM).

In light of the news, shares of BlackBerry increased by 4.4% to $11.76 per share, the highest mid-day trading since August of last year. Today, BlackBerry will hold an event whereby its new business enterprise server will be introduced. This server is used to communicate and manage devices safely.

Running on Blackberry’s new server, called BES12, will be Samsung’s Knox that offers an impressive suite of secure work applications, this according to a spokesperson for BlackBerry.

With this joint endeavor, BlackBerry will be allied with one of the largest competitors in the expanding market of mobile device management. This past July, Apple and IBM announced they would become allies on business services, which in response drove BlackBerry stock value down 12% in a single day of trading.

Over the years, BlackBerry and Samsung have developed a close partnership. As a team, the companies are fully committed to creating a deeper interaction between their product development and engineering teams over the long haul, this according to John Sims, head of enterprise services business for BlackBerry.

After taking over the Ontario-based company one year ago, John Chen, Chief Executive Officer of BlackBerry, turned the focus on business users. He also outsourced certain device manufacturing efforts. Although not confirmed, it appears the next step to Chen’s plan is to bring the company back to making a profit by 2016.

In a statement made earlier this week, Chen said a meeting had taken place with Xiaomi Corporation and Lenovo Group Ltd, Chinese makers of the smartphone as part of interest in expanding partnerships in that country.

The turnaround plan revealed by Chen has been supported by investors. As a result of this plan, stock rose 51% for 2014 and for the first time since 2009, put the company back on track to beat the Nasdaq Composite Index. In addition, Ontario Teachers’ Pension Plan beefed up its holding in the company to 1.6% as reported in a November 7 regulatory filing.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with our FREE daily email newsletter.